What it is and why it matters
Customer analytics refers to the processes and technologies that give organizations the customer insight necessary to deliver offers that are anticipated, relevant and timely.
As the backbone for all marketing activities, customer analytics comprises techniques such as predictive modeling, data visualization, information management and segmentation.
The importance of customer analytics
Customer analytics is becoming critical. To understand why, consider this: Customers are more empowered and connected than ever. And becoming more so. Customers have access to information anywhere, any time – where to shop, what to buy, how much to pay, etc. That makes it increasingly important to predict how customers will behave when interacting with your organization, so you can respond accordingly. The deeper your understanding of customers' buying habits and lifestyle preferences, the more accurate your predictions of future buying behaviors will be – and the more successful you will be at delivering relevant offers that attract rather than alienate customers.
What you can do with customer analytics
With customer analytics, you can:
- Increase response rates, customer loyalty and, ultimately, ROI by contacting the right customers with highly relevant offers and messages.
- Reduce campaign costs by targeting those customers most likely to respond.
- Decrease attrition by accurately predicting customers most likely to leave and developing the right proactive campaigns to retain them.
- Deliver the right message by segmenting customers more effectively and better understanding target populations.
The insights derived from our new analytics capabilities are allowing us to find the sweet spots that will continue to drive loyalty, profitability and sustainable growth.
Executive Director for Medium Business Marketing, Verizon